DisCos remitted ₦77.99 billion in Q4 2025 across Nigeria’s power sector.
They covered 91.19% of their financial obligations to the electricity market.
The Nigerian Electricity Regulatory Commission released the quarterly report.
The report shows a sector balancing reform progress with financial strain.
However, performance dipped slightly compared to the previous quarter.
In Q4 2025, DisCos received invoices worth ₦85.53 billion.
They remitted ₦77.99 billion within the same period.
Meanwhile, Q3 2025 showed stronger sector performance overall.
DisCos remitted ₦73.03 billion from ₦76.77 billion billed then.
As a result, that quarter recorded a higher efficiency rate of 95.13%.
Consequently, the Q4 decline raised concerns about liquidity pressures.
Operational stability also continues to face growing challenges.
Still, most DisCos met their financial obligations.
However, performance gaps persist across companies and regions.
For instance, Ibadan, Kano, Jos, and Kaduna DisCos recorded weaker outcomes.
Notably, Jos DisCo posted the steepest drop in performance.
Its remittance rate fell sharply compared to Q3.
Similarly, Kano, Ibadan, and Kaduna also recorded lower figures.
Despite these gaps, NERC confirmed most DisCos met full obligations.
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Power Discos Electricity Market Performance
In parallel, the Electricity Act 2023 continues to reshape the industry.
President Bola Ahmed Tinubu signed it into law in June 2023.
It replaced the Electric Power Sector Reform Act 2005.
Furthermore, the law allows private and state participation in electricity supply.
This shift aims to improve competition and expand electricity access.
However, financial pressure still weighs heavily on the sector.
Market Operations And Liquidity Pressure
The Market Operator issues invoices to DisCos regularly.
These invoices cover transmission and administrative services in NESI.
Consequently, these obligations continue to strain sector liquidity.
At the same time, DisCos manage customer refund requirements.
NERC ordered a ₦20.33 billion refund under the MAP scheme.
DisCos must complete refunds within twelve months.
They will credit the refunds directly to customer electricity accounts.
Subsidy Reform Outlook
Meanwhile, the Federal Government plans subsidy reforms from 2026.
It will share subsidy costs across all levels of government.
This includes federal, state, and local authorities.
Ultimately, the goal focuses on transparency and reduced hidden fiscal burdens.
Overall, Nigeria’s electricity sector continues its transition amid reforms and persistent challenges.
